Under pressure: financial services turns the screw

July 28, 2016

Securities Lending Times

The latest iteration of the Basel Committee on Banking Supervision’s (BCBS) Basel III leverage ratio framework has galvanised the global financial services industry into action to ensure that the final proposal, which is due by the end of 2016, is a viable addition to the post-financial crisis regulatory framework.

The BCBS presented its new proposal, which already includes several revisions from its original version, in April and offered financial services a final opportunity to provide feedback—and the response was damning.

One comment letter, signed by 30 exchanges and clearinghouses, along with other stakeholders, said the leverage ratio, in its current form, fundamentally threatens their business model and could affect financial market stability.

In total, 53 comment letters were sent to the BCBS during the three-month consultation. The full list of industry comment letters is available to read on the Bank for International Settlement’s website. Read more